Hong Kong Exchanges and Clearing (HKEX) has announced it will launch Indian rupee (INR) currency futures in the fourth quarter of this year. The exchange it plans to introduce two new contracts: the INR vs US Dollar (INR/USD) futures; and the INR vs Renminbi traded in Hong Kong (INR/CNH) futures, adding the INR/CNH Futures contract […]
Tag: FX Futures
European asset manager Union Investment has started trading Eurex FX futures after the firm says it saw “growing traction in the product as part of their overall FX portfolio strategy”. Eurex offers monthly and quarterly FX Futures as well as Rolling Spot Futures as a component of Deutsche Börse Group’s FX strategy. “We are now […]
Trading volumes on SGX’s FX futures hit an all-time in May, with $111.5 billion in notional value and over 1.84 million aggregate contracts traded. Year-on-year, May’s volumes represent a 49% growth in notional value and a 10% growth in aggregate contracts. SGX also saw a record for single day trading volume this month, with more […]
Bolsas y Mercados Españoles’ (BME) is set to launch FX futures contracts on its derivatives platform, MEFF. The new product, called FX Rolling Spot Future (xRolling FX), will be available for trading on June 21st. This launch comes at a time when BME claims it is working on several initiatives to increase its presence in […]
Before getting onto today’s theme I have some sad news to impart. Gary Munday, known to so many dealers of a certain generation as a member of the powerhouse Marshalls’ dollar-mark team, died suddenly at the weekend, aged 59.
As I never traded dollar-mark Gary never took my line, but he did my institution’s and he was well-liked by my colleagues who did work with him. My condolences to his family and friends at this very sad time.
Turning to today’s theme, it struck me over the weekend that if ever there was an FX-related example of the triumph of optimism over reality, or hope over expectation, surely it must come in the form of Ice Futures US.
Following the announcement that CME Group is to buy OTC platform operator and post trade services provider NEX Group for $5.4 billion, Galen Stops, raises five important questions that both the parties involved in the deal, and the wider FX market, probably need to consider. Is it good value? Could there be more deals for OTC platforms? Do OTC platforms need scale to survive? Will this deal lead to more futures trading? And does this deal represent competition for LCH?
A study published by Greenwich Associates looking at the costs associated with trading FX futures and cash OTC FX products argues that some buy side traders can achieve “significant” savings by using futures over cash.
The firm says it employed a proprietary quantitative model, which calculates the cost of opening, maintaining and closing out a position. To validate key inputs into the model and gather feedback on current demand and pricing, Greenwich says it spoke with 51 FX traders on the buy and sell side.
Singapore Exchange (SGX) has announced a new daily volume record for its SGX INR/USD futures contract.
The exchange says it handled a total of 108,417 contracts on 22 September 2017, translating to a notional value of $3.34 billion. The INR/USD is SGX’s most actively traded FX futures contract, and recent volume growth has extended its market share to more than 40%, SGX adds.
SGX also recorded its highest ever daily volume for its USD/CNH on 8 September 2017, with 25,857 contracts traded.
CME Group says it will launch spot FX basis spreads called CME FX Link on its Globex electronic trading platform. The exchange group says this will create the first ever central limit order book between the OTC spot FX and CME Group FX futures markets.
It is expected to launch in Q1 2018 and, CME says, will provide OTC FX market participants with a more efficient way to access and use FX futures as part of their overall trading activity.
CME Group will introduce implied functionality on six FX futures contracts and all SD calendar spreads to help increase liquidity in the contracts.
The changes, which will be effective 24 September, will take place in the euro, yen, sterling, Australian and Canadian dollar and EUR/GBP FX contracts.
In an advisory to clients, CME explains that implied functionality utilises bids and offers in both spreads and their outright contracts to provide “the most liquid possible markets with the best possible prices”.